After years of facing extortionate car insurance costs, young drivers now enjoy the prospect of 10.3 per cent cheaper insurance than a year ago, according to new figures.
Though under 25s are still likely to have to pay for some of the most expensive premiums, this dramatic drop in the cost of cover could show that the tide is about to turn for young motorists. On the other hand, those aged over 50 saw a 5.2 per cent increase in the cost of insuring their car, according to figures sourced by Consumer Intelligence.
Meanwhile, those with the cheapest premiums saw a 0.3 per cent increase in prices between May 2014 and May 2015. Showing that these figures are not just a fluke, drivers aged under 25 have seen a substantial 23.7 per cent drop in costs between October 2013 and May 2015, with the average cost across all age groups dropping by 2.9 per cent. Older drivers, however, now have to pay 7.9 per cent more than back in 2013.
The advent of black-box policies for younger drivers is pushing down premiums.
Young drivers still have to pay a considerable average of £1,628 per year, though the overall average cost across all age groups in May 2015 stood at £677. Those who fall into the 25 to 49-year old band can expect to stump up £457 for a year’s cover, while those over 50 still face the cheapest average premiums – which stand at £247 per year – despite increasing since 2013.
Explaining the dramatic drop in young driver’s premiums, Ian Hughes, chief executive of Consumer Intelligence, told Money Facts: "The advent of black-box policies for younger drivers is pushing down premiums – under-25s saw massive increases in premiums at the turn of the decade, so these reductions should help to put more of them back on the road. However, to some degree, this seems to be at the expense of older motorists."